Birmingham City Council needs an additional £120 million a year simply to maintain current services, according to a report presented to councillors. The warning has intensified pressure on Andy Burnham’s government over local-government funding.
Birmingham faces mounting budget pressures
The council report said inflation, rising pay costs and the needs of a growing population create an annual financial pressure of about £120 million. It also forecast potential budget gaps of £4.9 million in 2027–28, £13.7 million in 2028–29 and £88.2 million in 2029–30 if action is not taken.
Julien Pritchard, the council’s Green deputy leader, said Birmingham’s funding remained insufficient despite recent increases. He argued that the city had not recovered in real terms from reductions over the past 16 years.
“This council needs £120 million extra every year just to stand still,” Pritchard told a recent council meeting, according to the Local Democracy Reporting Service.
Government points to increased support
A spokesperson for the Ministry of Housing, Communities and Local Government said the government was making up to £2 billion available to Birmingham by 2028–29. The department said that represented an increase of more than 45 per cent compared with 2024–25.
The dispute comes as the government prepares wider plans to give English mayors and regional leaders more control over investment. Those plans include an initial £285 million in Good Growth funding next year, alongside proposals for a £1.5 billion borrowing facility from 2028.
The available reporting confirms the council’s projected pressures and the government’s stated funding commitment. It does not establish that the additional £120 million requested will be provided, nor does it identify a final resolution to Birmingham’s longer-term budget gap.
Sources and verification
- Birmingham Mail / Local Democracy Reporting Service: substantive report on Birmingham’s financial pressures and government response.
- The Independent: independent reporting on planned funding and borrowing powers for English mayors.
